Science & Technology
Science and Technology
Science and Technology
Thu, November 20, 2008
Wed, November 19, 2008
IBSG International, Inc.: IBSG International, Inc. Reports Three Month Results
CELEBRATION, FL--(Marketwire - November 19, 2008) - IBSG International, Inc. (the "Company") (
Revenue increased approximately $2.8 million, or 27%, from approximately $10.1 million for the nine months ended September 30, 2007 to approximately $12.9 million for the same period in 2008. Net income before taxes decreased approximately $567,000, or 10%, from approximately $5.5 million for the nine months ended September 30, 2007 to approximately $5.0 million for the same period in 2008. Net income after taxes decreased approximately $246,000, or 7%, from approximately $3.4 million, or $0.43 per diluted earnings per share for the nine months ended September 30, 2007 to approximately $3.1 million or $0.29 per fully diluted earnings per share for the same period in 2008. The number of weighted average shares outstanding on a fully diluted basis, used in the calculation of earnings per share, for the nine months ended September 30, 2008 was 10,694,051 as compared to 7,740,306 for the same period of 2007. The decrease was due to taxes, an increase in professional services including any commissions and an increase in the average weighted stock number.
Net cash provided by operating activities for the nine months ended September 30, 2008 was $6.3 million as compared to net cash used in operating activities of $493,000 for the same period in 2007. This resulted in a $6.8 million increase in net cash provided by operating activities period over period. As of September 30, 2008, the Company had cash on hand of approximately $9.0 million, a 319% increase as compared to the approximately $2.1 million cash on hand as of December 31, 2007. Working capital increased approximately $7.5 million, or 42% from approximately $17.7 million as of December 31, 2007 to approximately $25.2 million at September 30, 2008.The increase coming from continued growth of existing contracts.
Revenue decreased approximately $261,000, or 7%, from approximately $4.0 million for the three months ended September 30, 2007 to approximately $3.7 million for the same period in 2008. Net income before taxes decreased approximately $375,000, or 24%, from approximately $1.5 million for the three months ended September 30, 2007 to approximately $1.2 million for the same period in 2008. Net income after taxes decreased approximately $108,000, or 13%, from approximately $820,000, or $0.10 per diluted earnings per share for the three months ended September 30, 2007 to approximately $712,000 or $0.06 per fully diluted earnings per share for the same period in 2008. The number of weighted average shares outstanding on a fully diluted basis, used in the calculation of earnings per share, for the three months ended September 30, 2008 was 11,314,750 as compared to 7,845,131 for the same period of 2007.
Commenting on the announcement, Dr. Michael Rivers, CEO of IBSG International stated, "For a company to continue to perform at these levels takes tremendous dedication and focus, especially during a worldwide economic down turn. We are experiencing an increase in demand for our platform as nations are not just focused on accelerating trade but protecting their GDP.
We are also seeing more nations negotiating in tandem with the intent of implementing simultaneously. The Company's performance has enabled us to strengthen our balance sheet beyond the Company's operational average cash needs to demonstrate to governments the added financial strength the Company has to implement multiple projects simultaneously around the world. We project, but cannot guarantee, that by the end of this year, we will have over 70,000 subscribers with a possible back log of over 3 million subscribers from current projects."
About IBSG International, Inc.:
IBSG International, Inc. ([ http://www.ibsgi.com/ ]), through its wholly-owned subsidiaries, is the developer and marketer of BizWorld Pro©, a unique turnkey digital service center software, that provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform. IBSGI licenses BizWorld Pro© primarily to international government agencies and ministries, State governments within the United States, as well as business ENTERPRISES, who typically both utilize the platform internally and make the platform available on a subscription basis to small-to-medium size enterprise businesses within their jurisdiction. For more information about the Company, please visit us on the web at [ www.ibsgi.com ] or call 321-939-6321. Investor Relations Contact: SGI; Mr. Stan Altschuler or Mr. Richard Cooper, 212-838-1444.
Safe Harbor Forward-Looking Statements: Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The above information does not guarantee any successful closing of new business. No assurances can be given that any projections related to gross revenues or profit margins will be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
- FINANCIAL TABLES TO FOLLOW -
IBSG International, Inc. and Subsidiaries Consolidated Balance Sheets September 30, December 31, 2008 2007 ------------- ------------ (Unaudited) (Audited) ASSETS CURRENT ASSETS Cash $ 8,952,415 $ 2,138,496 Accounts receivable, net 24,471,255 20,673,831 Prepaid expenses 1,367,979 1,402,274 ------------- ------------ Total Current Assets 34,791,649 24,214,601 ------------- ------------ FURNITURE, FIXTURES AND SOFTWARE, NET 425,182 703,024 ------------- ------------ OTHER ASSETS Accounts receivable, net of current portion 4,995,000 6,195,000 Note receivable 1,868,215 1,802,324 Other assets 141,385 141,665 Deferred consulting services 1,457,398 2,350,375 Deferred tax asset, net 1,717,127 350,000 ------------- ------------ Total Other Assets 10,179,125 10,839,364 ------------- ------------ TOTAL ASSETS $ 45,395,956 $ 35,756,989 ============= ============ LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 1,183,588 $ 878,770 Income tax payable 3,810,441 1,026,350 Deferred revenue 3,253,192 3,711,347 Deferred tax liability, net 1,342,176 914,137 ------------- ------------ Total Current Liabilities 9,589,397 6,530,604 ------------- ------------ Deferred revenue, net of current portion 4,995,000 4,995,000 ------------- ------------ TOTAL LIABILITIES 14,584,397 11,525,604 ------------- ------------ COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY Common stock authorized 100,000,000 shares at $0.001 par value; 12,436,621 and 9,685,052 shares issued and outstanding as of September 30, 2008 and December 31, 2007, respectively 12,438 9,686 Additional paid-in capital 23,629,185 20,160,045 Retained earnings 7,169,936 4,061,654 ------------- ------------ Total Stockholders’ Equity 30,811,559 24,231,385 ------------- ------------ TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 45,395,956 $ 35,756,989 ============= ============ IBSG International, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------------- -------------------------- 2008 2007 2008 2007 ------------ ------------ ------------ ------------ Sales $ 3,728,152 $ 3,989,135 $ 12,932,704 $ 10,144,286 Cost of Sales 89,093 89,093 267,279 267,279 ------------ ------------ ------------ ------------ Gross Profit 3,639,059 3,900,042 12,665,425 9,877,007 General and Administrative 2,471,094 2,390,465 7,712,386 4,455,414 ------------ ------------ ------------ ------------ Income from Operations 1,167,965 1,509,577 4,953,039 5,421,593 Interest Income -- 32,947 -- 98,838 ------------ ------------ ------------ ------------ Net Income Before Provision of Income Taxes 1,167,965 1,542,524 4,953,039 5,520,431 Provision for Income Taxes (455,941) (722,195) (1,844,757) (2,166,585) ------------ ------------ ------------ ------------ Net Income $ 712,024 $ 820,329 $ 3,108,282 $ 3,353,846 ============ ============ ============ ============ Net Income Per Share - Basic/Diluted $ 0.06 $ 0.10 $ 0.29 $ 0.43 ============ ============ ============ ============ Weighted Average Number of Shares Outstanding During the Period - Basic/Diluted 11,314,750 7,845,131 10,694,051 7,740,306 ============ ============ ============ ============
